Marvell's Record Quarter Sparks Analyst Price Hikes Despite Mild 'Sell the News' Pullback

Marvell Technology delivered blowout fiscal first-quarter results, yet its shares slipped 0.18% to close at 175.80 euros on Friday — a textbook "sell the news" flicker following a 130% year-to-date surge. The modest retreat belied a torrent of bullish catalysts: an upgraded long-term revenue outlook, fresh details on its deepening ties with Nvidia, and an immediate flurry of analyst price-target increases from the likes of JPMorgan Chase and HSBC.

The chipmaker booked record quarterly revenue of $2.42 billion, up 28% year over year, powered by its datacenter segment. That unit alone contributed $1.83 billion — 76% of total sales — beating internal guidance by $18 million. Adjusted earnings per share came in at $0.80, a 33% gain, while reported GAAP profit tumbled 81% to $34.5 million, weighed down by acquisition-related costs tied to the February 2026 takeovers of Celestial AI and XConn Technologies. For investors focused on the operational core, however, the underlying business is firing on all cylinders.

Operating cash flow hit a record $638.8 million, and free cash flow reached $483.1 million, representing a 20% margin. Several analysts argue that such cash generation supports a fair market capitalization around $220 billion, implying a price target of $251 to $253 — roughly 20% above current levels.

Should investors sell immediately? Or is it worth buying Marvell Technology?

The Nvidia partnership has become a central pillar of the growth story. In late March, the AI chip giant pumped $2 billion into expanding their collaboration. Marvell will now supply custom XPUs and networking components for Nvidia's NVLink Fusion platform, targeting the construction of scalable AI data centers. The deal cements Marvell's role as a serious contender against Broadcom in the high-end interconnect space. Management expects interconnect revenue to surge more than 70% this year, driven by rising demand for 800G and 1.6T optical links.

Analyst upgrades arrived in quick succession. JPMorgan Chase lifted its price target from $135 to $240, while HSBC upgraded the stock to "Buy." Stifel Nicolaus raised its target to $230 from $210, citing the massive expansion of Marvell's AI opportunity and its outsized positioning in next-generation data center infrastructure. HSBC specifically pointed to the company's growing visibility and contractually secured design wins.

The long-range picture is becoming clearer. For the second fiscal quarter, Marvell forecasts revenue of roughly $2.7 billion, up 35% year over year, with adjusted EPS ranging from $0.88 to $0.98. Management also boosted its full-year fiscal 2028 outlook by $1.5 billion to $16.5 billion — a 10% upward revision in just three months. By fiscal 2029, the company expects its custom-silicon business alone to generate over $10 billion in annual revenue, underpinned by a pipeline of more than 50 custom-chip projects with an estimated lifetime revenue potential of $75 billion.

The stock now trades about 39% above its 50-day moving average, with a relative strength index of 44.4 — neutral territory leaning toward slightly oversold. Immediate support sits at $180 (30-day line) and then $160. Institutional ownership exceeds 80%, a sign of prolonged conviction. The next key catalyst arrives on June 17, when Marvell hosts a Custom AI Investor Event. Details on that multi-billion-dollar project pipeline should provide further ammunition for a valuation that, after a 213% twelve-month run, continues to attract fresh Wall Street bulls.

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